FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Understanding Accounting and Financial Information

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 121

Multiple Choice

Review LaterAdd Note

Review Later

A firm's reports the profit or loss for the firm over a specified time period.

A) income statement
B) balance sheet
C) statement of cash flows
D) bank statement

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 122

True/False

Review LaterAdd Note

Review Later

The return on sales ratio measures a firm's use of leverage.

A) True
B) False

Correct Answer

verified

Show Answer

Question 123

Multiple Choice

Review LaterAdd Note

Generally the higher the risk involved in an activity, the the rate of return expected by investors.

A tax accountant is responsible for preparing tax returns and developing tax strategies.

The work of a certified management accountant is intended to enable people outside of the organization to make investment decisions.

Although accounting has several specific uses, the overall purpose of accounting can be summarized as:

The firm's most valuable assets are listed at the top of its balance sheet.

Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit, and then sell the goods to their customers on credit. These companies sometimes have difficulty repaying their suppliers when customers who buy on credit don't pay on time. Firms that experience this difficulty need to do a better job of:

When an accountant "writes off" the cost of a tangible asset over its estimated lifetime, it is called depreciation.

Potential investors are interested in both a firm's balance sheet and income statement when evaluating whether or not to invest in a firm.

Kelley's Kloset, LLC has applied for a business loan. Her prospective banker has requested information concerning the financial condition of her business. Which accounting discipline is responsible for providing accounting information to outside stakeholders?

As an accountant, Joe Billings responsibilities include:

Which financial statement reports the company's revenues and selling costs over a period of time?

Retailers attempt to sell older merchandise before more recently acquired merchandise is sold. The assumptions made by the method of inventory valuation are most consistent with this approach.

Fraudulent accounting practices do not just occur in firms who do not have on site accountants. According to the Legal Briefcase box provided in your textbook, illegal and questionable accounting practices have been the demise of some large multi-national corporations. The professionals assigned to investigate these improprieties are:

The basic earnings per share ratio does not take stock options, warrants, and preferred stock into account.

Which of the following is an area of importance in accounting?

The sixth and final step in the accounting cycle involves:

Cash revenues from the sale of new cars at Pete's Auto Emporium would be listed as a cash inflow from operations on Pete's statement of cash flows.

FIFO is a method of computing net cash flows by subtracting financial inflows from financial outflows.